Housing benefits, Universal Credit expert and RLA trainer Bill Irvine has written about the Department of Work and Pensions (DWP) faulty IT system in supplying inaccurate information on tenants which sometimes leads to termination of payments unnecessarily. This has led to avoidable arrears. The following article is taken from Bill’s blog which describes DWP’s reaction and what landlords should be aware of…

Housing benefits, Universal Credit expert and RLA trainer Bill Irvine has written about the Department of Work and Pensions (DWP) faulty IT system in supplying inaccurate information on tenants which sometimes leads to termination of payments unnecessarily. This has led to avoidable arrears. The following article is taken from Bill’s blog which describes DWP’s reaction and what landlords should be aware of:

As my bulletin, at the time explained, the problem was caused by DWP IT systems wrongly advising council housing benefit sections that Job Seekers Allowance (JSA) had been cancelled when, in fact, it had only been sanctioned. There is an important difference, as, in the case of sanctions, it shouldn’t have affected the HB/LHA (Local Housing Allowance) award as the HB regulations act to recognise and protect the underlying award in such situations. But, in thousands of cases, UK wide, HB was mistakenly being cancelled, resulting in, wholly avoidable rent arrears going through the roof, and tenants being subjected to the worry, anxiety and costs of repossession action, when the fault lay entirely at the doorstep of DWP systems and processes.

So what’s changed?

It would appear the problem has continued unabated, despite adverse publicity, forcing DWP to take remedial action.

It has now officially acknowledged, the concerns expressed by tenant representatives were wholly justified and have issued new instructions, in the form of an URGENT HB Circular, to councils UK wide reinforcing the points I’ve made above and in my earlier bulletin.

If you’re a social landlord, I would recommend you forward copies of this important document to welfare rights, money advice and income management staff, so they can now take the appropriate action to remedy those past errors, where they still persist. Councils, aware of the issue, should do their level best by revising any decisions, in the past year, where cancellation has been mistakenly applied.

If you’re a private landlord seeking advice on this topic, phone the RLA’s “helpline” or contact me direct for assistance.

Alternatively, if you need more general advice on the challenges posed by Universal Credit or any welfare reform topic, please get in touch by e-mailing bill@ucadvice.co.uk or phone 07733 080 389.

About the author

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

About Author

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.